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# Evaluate the likely private costs and external costs involved in such major power station construction projects
- URL: https://www.a-level-economics-tutor.com/evaluate-the-likely-private-costs-and-external-costs-involved-in-such-major-power-station-construction-projects/
- Published: 2026-05-20T11:57:42.000Z
- Updated: 2026-05-20T11:57:42.000Z
- Author: Jaisul Naik
- Tags: Edexcel 25 Mark Question

**In September 2016 the government approved the building of an £18 billion nuclear power station, Hinkley Point C, which will supply 7% of UK electricity for up to 60 years. The power station is funded by Chinese and French investment.**

**Evaluate the likely private costs and external costs involved in such major power station construction projects. Use an appropriate externalities diagram in your answer. (June 2018)**

**Plan**

- **Paragraph 1**
  - **Argument: private costs include paying staff, and buying raw materials like steel**
  - **Diagram: increase in AC and MC**
  - **Evaluation: the government can still achieve allocative efficiency if the power station is nationalised**
- **Paragraph 2**
  - **Argument: external costs include pollution and environmental damage**
  - **Diagram: negative production externalities**
  - **Evaluation: positive consumption externalities can outweigh these**

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